Supreme Court Case May Impact EA's NFL Exclusive

March 5, 2009 -

A non-gaming case currently before the United States Supreme Court stands to have a massive impact on the video game industry.

The case is American Needle vs New Orleans Saints, et al. Should the Supreme Court find in favor of plaintiff American Needle, an apparel manufacturer, EA's exclusive NFL licensing deal and Take-Two's third-party exclusive with Major League Baseball could be found in violation of federal antitrust (i.e., monopoly) statutes. Such a determination would free other publishers to make games based on the NFL and MLB.

SCOTUSblog, which tracks happenings before the Supreme Court, reports on the case:

The NFL used to license American Needle to sell hats that bore the logos, the names or other insignia of pro football teams... But, in 2000, the NFL opted to solicit bids for an exclusive license to produce caps and other headwear.  Reebok won the bidding, and in 2001 got an exclusive ten-year license.  American Needle’s license was not renewed. So it sued the NFL, all of its teams, NFL Properties, and Reebok.

American Needle’s case was thrown out by lower courts... “The [Supreme] Court has stated, on more than one occasion,” American Needle asserted, “that application of the Sherman Act to professional sports teams is wholly consistent with Congressional inent...”

What happened to American Needle in relation to apparel is essentially what happened to Take-Two in regard to its excellent NFL2K series when EA scored its exclusive license with the NFL in 2004.

Attorneys for EA are clearly tracking the American Needle case. The phrase "American Needle" appears nine times in a transcript of arguments made by attorneys last November in Pecover vs. Electronic Arts, a class-action suit which alleges that consumers were hurt by EA's NFL exclusive (see: Spirited Courtroom Argument Highlights Madden Monopoly Case).

SCOTUSblog reports that the Supreme Court has requested government lawyers to weigh in on the case.


Comments

Re: Supreme Court Case May Impact EA's NFL Exclusive

I'm Rooting for the Exclusivity Deals to be dropped by the supreme court(That'll Teach EA and T2 a lesson for hogging the NFL and MLB)

Watching JT on GP is just like watching an episode of Jerry springer only as funny as the fights

America has just became its own version of the Jerry Springer Show after a bizarre moment in Florida involving a carnival worker.

Re: Supreme Court Case May Impact EA's NFL Exclusive

This wouldn't be a good thing.

It's the same as saying that McDonalds has no right to the Big Mac.

Private Bussiness is private the last thing we need in this time is more branches of government saying what can and can't be done, and guess what this works for these industries since the NFL,EA, or Take 2 haven't asked for a bailout.

Re: Supreme Court Case May Impact EA's NFL Exclusive

I'd love to see these exclusive deals get dissolved. Take Two has done an awful job with the MLB license on 360, and I'd love to see "The Show" come to 360. 

Bottom line is that competition creates better products. I'm all for that.

Re: Supreme Court Case May Impact EA's NFL Exclusive

Um, shouldn't the NFL have the right to say who can and can't use their IP?

Re: Supreme Court Case May Impact EA's NFL Exclusive

Wouldn't the NFL teams, players, and logos, fall under IP? IP holders have a right to give exclusive rights to anyone they so choose.

Re: Supreme Court Case May Impact EA's NFL Exclusive

I think the use of the players, teams and logos for the purpose of a football-themed... thing... is protected by the IP.

| XBOX LIVE GamerTag: Harry Miste | Steam ID: Harry Miste | PSN ID: HarryMiste | Needs a thesaurus. |

| XBOX LIVE GamerTag: Harry Miste | Steam ID: Harry Miste | PSN ID: HarryMiste |

Re: Supreme Court Case May Impact EA's NFL Exclusive

I believe it counts as IP, but EA has exclusive deals with the NFL and the NFLPA (as well as the coaches union I believe); the former for the use of the team logos, stadiums, etc. and the latter to use the names of the players.

Re: Supreme Court Case May Impact EA's NFL Exclusive

I think the Supreme court Justices are going to make fun of the fact that EA held a monopoly on NFL games Heres the possiblility

John Roberts: We the court has found that American needle has been found in violation of the Sherman and Clayton Acts and therefore we demand that the company should be split up

EA & T2: We're F@**ED, we may have to share the license of MLB and NFL now

END TSG-esce courtroom reenactment

Watching JT on GP is just like watching an episode of Jerry springer only as funny as the fights

America has just became its own version of the Jerry Springer Show after a bizarre moment in Florida involving a carnival worker.

Re: Supreme Court Case May Impact EA's NFL Exclusive

"Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony"

Hm... I guess they can make a point there. I wonder what statements those are though.

Re: Supreme Court Case May Impact EA's NFL Exclusive

I don't think that the EA+NFL or 2K+MLB suit would work out because it's a temporary exclusive. On top of that, I belive for any anti-trust suit to pass through the product being tested must also prove to be necessary for moderen society. The previous anti-trust suits are on the following of two basis. Lack of competition+Need for modern society. With Oil there is an obvious need for that product in modern society, with phones there was a need for it in modern society, and for OS software there is a need for it in modern society. NFL and MLB does not fill this area, so I highly doubt it will go through.

Re: Supreme Court Case May Impact EA's NFL Exclusive

The deal before the courts involves a temporary exclusive, though.

Re: Supreme Court Case May Impact EA's NFL Exclusive

I'm sure there will be a counterclaim though if it doesnt pass.

Re: Supreme Court Case May Impact EA's NFL Exclusive

which means this probebly wont pass.

 
Forgot your password?
Username :
Password :

Poll

Will we ever get Half-Life 3?:

Shout box

You're not permitted to post shouts.
Papa MidnightThere's no need for it. A declaration of a Conflict of Interest is only necessary in the event that the parties may be placed into a situation where the conflict may become a factor.10/02/2014 - 10:16am
KronoIt was after #gamergate. There was a post on r/games that called out the lack of disclosure.10/02/2014 - 10:12am
Papa MidnightKrono: If the purpose of such was to expose some conflict of interest, I am not sure what the purpose or end objective was. Specifically, said relationship had not produced any works positive or otherwise. Where's the beef?10/02/2014 - 10:09am
prh99I don't know, the update isn't dated. Also, actual attempt at deception or absent mindedness? "Never attribute to malice that which is adequately explained by stupidity"10/02/2014 - 10:06am
Krono@prh99 disclosed in an update after #gamergate noticed and called it out.10/02/2014 - 10:04am
Papa MidnightDriving people from their homes. e-Letter bombing (for all practical intents and purposes) advertisers like they're the FCC after a certain Superbowl half-time show to pull advertising from a media outlet for the crime of having an opinion?10/02/2014 - 10:00am
Papa MidnightIt's hard to drape yourself in the glory of your righteous campaign when you're exposing the personal information of a person, and following up with a campaign of harassment (organised or ortherwise). 12 year olds calling your personal cell for Five Guys?10/02/2014 - 9:58am
prh99http://kotaku.com/anna-anthropy-designer-behind-dys4ia-and-triad-and-au-1448084641 <--relationship disclosed10/02/2014 - 9:57am
Papa MidnightEven to this day, that remains the primary citation of those embarking in it. That said, the whole "it's not about harrassment" thing is comparable to making an extremely racist statement, then following up by saying "but I'm not a racist."10/02/2014 - 9:56am
Papa MidnightI think EZK is more spot-on. This may have carried on far beyond it's genesis, but the true driving force of this whole astroturfing campaign was the angst of an ex-boyfriend of Zoe Quinn's.10/02/2014 - 9:54am
KronoAnd that's off the top of my head, specific to Kotaku.10/02/2014 - 9:54am
E. Zachary KnightKrono, yet no one can actually point at any "positive reviews" or otehr press given Quinn by Grayson.10/02/2014 - 9:53am
KronoBeyond that you have Patricia Hernandez writing reviews for, and plugging Anna Anthropy's work. Anna being Patricia's friend and former roomate.10/02/2014 - 9:52am
Sleaker@EZK - I believe there were a few more related to Patreon, and IGF. But regardless of the disclosure thing, that was only half of my statement, and I'm simply trying to speak on the reasons why GG got popular. But you sidestepped my last question there...10/02/2014 - 9:50am
KronoThe only questions is whether or you believe Grayson's previous friendship with her, and possible interest in starting a romance influenced his reporting.10/02/2014 - 9:48am
Krono@EZK There's nothing supposed about Grayson and Quinn having a relationship. Kotaku itself confirmed said romance matching the timeline Eron posted: http://goo.gl/yLgdx910/02/2014 - 9:46am
prh99So far the only "crimes" seem to be editorializing and collaboration outside their respective organizations. If they are going to persist at least point to something actually questionable.10/02/2014 - 9:45am
E. Zachary KnightSo aside from the supposed Kotaku/Quinn relationship, do you have a specific example of said lack of disclosure?10/02/2014 - 9:36am
prh99#gamergate renamed #butthurtfarce10/02/2014 - 9:31am
Sleakerwhat the message that they are actually trying to convey is.10/02/2014 - 9:30am
 

Be Heard - Contact Your Politician